The world's largest cargo ship Ever lot reaches our neighboring countries Malaysia and Sri Lanka but it does not reach the ports of our country. This ship is comparable to America's Imperial State Building in terms of length. Let us know why this huge container does not turn to India despite being the third largest economy in the world.
The lack of infrastructure at ports hinders the dream of Make in India
Prime Minister Narendra Modi's dream of making India the world's manufacturing hub is facing a setback due to inadequate port infrastructure in the country. The country's inability to attract large container ships is one of the biggest stumbling blocks in the path of Make in India. Most of the ports on the Indian coast are not deep enough to handle ships like the Ever A lot. Ever A lot is the world's largest boxship at 400 meters long and can load over 24,000 twenty-foot equivalent units. The Ever A lot ship, the length of the Imperial State Building, has visited ports in India's neighboring country Sri Lanka as well as Malaysia in recent months but did not reach India. This situation is not good for India the third-largest economy in the world.
# No capacity to handle giant ships even at India's largest government port
Jawaharlal Nehru Port Trust (JNPT), India's largest government container handling facility, also does not have the 17-meter draft required to navigate the world's largest ships like the Ever A lot. Mundra Port, operated by billionaire Gautam Adani's group, however, claims to handle such vessels. The 17,292-TEU APL Raffles is the largest ever to arrive there in January 2022 with 13,159 TEUs. Drury Maritime Advisors Director Shailesh Garg said, "Facilities to dock larger ships drive the economy. However, increasing ship size alone will not help in expediting the movement of goods from the hinterland." There is also a need to improve road and rail connectivity from ports to warehouses, factories, and shops, he added.
Poor shipping connectivity affecting India's trading ability globally
According to a report by the Reserve Bank of India in 2022, poor shipping connectivity hinders India's integration into global value chains. RBI said the country scored 34% in the GVC Participation Index, while the score for the 10-member Association of Southeast Asian Nations was 45.9%. According to a separate report, Vietnam topped the list with a score of 50%. Mundra Port hosted the APL Raffles three years after welcoming a similar class ship from Vietnam. This shows the extent to which Asia's third-largest economy is risking losing out to the competition for a larger share of trade. Mundra is the highest-ranking port in India in the index compiled by the World Bank Group and S&P Global Market Intelligence. India has got the 48th position in this ranking.
Experts claim - the Indian port is not capable of utilizing the full capacity of large ships
Weak infrastructure is affecting the target of increasing the share of manufacturing in GDP from 14% to 25%. It is also affecting the Modi government's target of increasing the country's share in global merchandise exports to 3% by 2027 and 10% by 2047. It is currently 2.1%. AP Moller-Maersk A/S said in an emailed response to queries, "The existing port and terminal infrastructure in India limits the possibility of harnessing the full potential of large vessels. These include drafts, cranes at terminals used for cargo loading and unloading, and port throughput capacity."
# Movement of goods from ports to business establishments is also a challenge
Another point to note here is that Indian importers and exporters are spread across the country and the cost and time involved in shipping and receiving cargo from ports closer to their place of operation is high. According to Maersk, smaller vessels in this situation provide the option of visiting more ports and transferring smaller quantities of cargo, rather than focusing on a single hub.
# China has more developed ports and infrastructure
"Developing maritime capability will be critical to compete with China and other emerging manufacturing hubs in Southeast Asia and other regions. China has a far more developed and efficient port and logistics infrastructure," Drury's Garg said. In terms of container throughput, it has been just 16 million TEUs in India's case as compared to 245 million TEUs for China till December 2020, according to data from London-based data analysis firm CEIC.
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